Huge backlog18 Apr 2024 21:54
From Edison research -
Global geopolitical tensions have sparked higher defence spending by the US DoD
and NATO countries. The need for military protection is critical, with ballistic military
helmet and respirator demand expected by Avon to experience a CAGR of c 4%
from 2024–28, representing a significant boost to Avon’s growth prospects. This is
reflected in its order backlog of over $180m (a decade high), partially attributable to
a rise in head protection orders with c $60m of orders for NG IHPS and over $20m
for ACH GEN II. Delivery ramp-ups combined with inventory turnover improvement
and anticipated $10m annualised cost savings from the Irvine site closure should
help boost operating margins to the targeted c 15% level.